Tag Archive for: supplier lead time


Lead Time Forecasting

Lead Time is an important factor in any demand-driven forecasting or retail replenishment system. It drives your order points and helps you place orders at just the right time. If your lead time is inaccurate you will quickly find yourself overstocked or understocked.

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Driving Backwards in the Dark Without Lead Time Forecasting

Is Lead Time Forecasting Your Missing Link?

Lead Time Forecasting is a critical link in your supply chain. For a service-based inventory replenishment system, it is also an indispensable piece to identify when it is time to place the order. Let us review why you should tighten this link in your supply chain.

Lead Time impacts when you place an order to avoid lost sales. It also helps you avoid goods arriving early that create overstock while helping you plan better and drive better results…If you know the real lead time – you don’t, lead time forecasting solves the problem.
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Could #Sharknado be Chewing Up Your Lead Time ?

This is an excerpt from,” Did Sharknado Chew Up All Your Lead Time?”,” found in the August 2013 edition of Retail Value Chain Federation’s monthly newsletter, RVCF Link. To see the article in its entirety: RVCF LINK. It is part of an ongoing 5 part series on Demand Forecasting and Inventory Replenishment.

Lead Time is a large factor in your supply chain performance. Like a shark chewing voraciously, Lead Time variance chews up profits in multiple ways. A shorter than expected lead time causes overstocks with additional carrying costs, theft, and potential damage issues. A longer than expected lead time creates out of stock service issues or additional product and freight costs and devours customer opinions and bottom line profits.

Poor lead time performance also “chums” your supply chain with a barrage of activity; e-mails, phone calls, and impromptu meetings drain organizational energy and productivity while increasing stress levels.
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Do you make these mistakes with Lead Time?

Lead Time continues to be one of the most requested topics in our discussion groups, customer surveys, and blog research interviews.  There are several reasons that Lead Time is important: a significant portion of your inventory dollars are invested in lead time, it’s a critical component to Just in Time (JIT) inventory replenishment, and last, many consulting and logistics software companies tout how Lead Time is the Holy Grail to achieving inventory optimization. Don’t believe the last one, its smoke and mirrors.

Lead Time process improvements provided one retailer a $1 Million dollar gross profit gain from lost sales reductions!

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